EMC 2002 Annual Report Download - page 32

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Table of Contents
FACTORS THAT MAY AFFECT FUTURE RESULTS
Our prospects are subject to certain uncertainties and risks. This Annual Report on Form 10-K also contains certain forward-looking statements within
the meaning of the Federal securities laws. Our future results may differ materially from our current results and actual results could differ materially from
those projected in the forward-looking statements as a result of certain risk factors, including but not limited to those set forth below, other one-time events
and other important factors disclosed previously and from time to time in our other filings with the SEC.
Our business could continue to be materially adversely affected as a result of general economic and market conditions.
We are subject to the effects of general global economic and market conditions. Our operating results have been materially adversely affected as a result
of unfavorable economic conditions and reduced information technology spending. If economic and market conditions do not improve, our business, results of
operations or financial condition could continue to be materially adversely affected.
Our business could continue to be materially adversely affected as a result of a lessening demand in the information technology market.
Our revenue and profitability depend on the overall demand for information storage systems, software and services, particularly in the product segments
in which we compete. During 2001 and 2002, we experienced a decrease in demand for information storage products as customers delayed or reduced their
information technology expenditures. Further delays or reductions in information technology spending, domestically or internationally, could continue to
materially adversely affect demand for our products and services which could result in decreased revenues or earnings.
We may be unable to keep pace with rapid industry, technological and market changes.
The markets in which we compete are characterized by rapid technological change, frequent new product introductions, evolving industry standards and
changing needs of customers. There can be no assurance that our existing products will continue to be properly positioned in the market or that we will be
able to introduce new or enhanced products into the market on a timely basis, or at all. We spend a considerable amount of money on research and
development and introduce new products from time to time. There can be no assurance that enhancements to existing products or new products will receive
customer acceptance. As competition in the storage industry increases, it may become increasingly difficult for us to maintain a technological advantage and
to leverage that advantage toward increased revenues and profits.
Risks associated with the development and introduction of new products include delays in development and changes in data storage, networking and
operating system technologies which could require us to modify existing products. Risks inherent in the transition to new products include the difficulty in
forecasting customer preferences or demand accurately, the inability to expand production capacity to meet demand for new products, the impact of
customers' demand for new products on the products being replaced, thereby causing a decline in sales of existing products and an excessive obsolete supply
of inventory, and delays in initial shipments of new products. Further risks inherent in new product introductions include the uncertainty of price-performance
relative to products of competitors, competitors' responses to the introductions and the desire by customers to evaluate new products for longer periods of
time. Our failure to introduce new or enhanced products on a timely basis, keep pace with rapid industry, technological or market changes or effectively
manage the transitions to new products or new technologies could have a material adverse effect on our business, results of operations or financial condition.
The markets we serve are highly competitive, and we may be unable to compete effectively.
We compete with many established companies in the markets we serve and some of these companies (whether independently or by establishing
alliances) may have substantially greater financial, marketing and
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